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Posts tagged "Income Tax Act"

Smith v. R. - TCC: Second unexplained failure to appear - appeal dismissed with costs
Oct 15, 2015 By Bill Innes
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Précis: The taxpayer instituted an appeal respecting rental losses. He failed to appear at a hearing in February and the Crown moved to dismiss the appeal. The Court adjourned sine die to be set down promptly at a future date. The taxpayer failed to appear at the second hearing although he had been notified of the hearing.
Smith v. R. - TCC: Second unexplained failure to appear - appeal dismissed with costsREAD MORE »
Solutions MindReady R&D Inc. v. R. - TCC: Taxpayer under de facto control of public company
Oct 14, 2015 By Bill Innes
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Précis: The facts in this case were somewhat of a clone of those in the decision of the Federal Court of Appeal blogged earlier on this site: Lyrtech RD Inc. v. The Queen (the Tax Court in fact noted that the same accounting firm was used to implement both structures). To put a complex matter somewhat simply Solutions MindReady inc. (“Public”), a public company, spun off its SRED activities to a new corporation, Solutions MindReady R&D inc. (“Private”), which was owned by a Trust affiliated with Public. Private claimed SRED credits in respect of its taxation years ending on November 29, 2005, and December 31, 2005. The Minister denied the credits on the basis that Private was de facto controlled by Public and therefore not entitled to claim SRED credits.
Solutions MindReady R&D Inc. v. R. - TCC: Taxpayer under de facto control of public companyREAD MORE »
Bope v. R. - TCC: Court rejects another appeal involving bogus charitable receipts
Oct 13, 2015 By Bill Innes
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Précis: Mr. Bope claimed to have made cash donations in 2009 totalling $3,800 to Revival Time Ministries International (“Revival”) to benefit the poor and sick in Africa. This was roughly 10% of his gross income for the year. The Minister originally allowed the donations but subsequently reassessed to deny them. Mr. Bope appealed to the Tax Court.
Bope v. R. - TCC: Court rejects another appeal involving bogus charitable receiptsREAD MORE »
Anderson v. R. - TCC: No extension to file objections where taxpayer years out of time
Oct 05, 2015 By Bill Innes
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Précis: Mr. Anderson applied for an extension of the time to file notices of objection for his 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, and 2009 taxation years. His original time to file such notices of objection with the Minister expired anywhere from 2007 to 2010, depending on the taxation year in question.
Anderson v. R. - TCC: No extension to file objections where taxpayer years out of timeREAD MORE »
Hayfron-Benjamin v. R. - FCA: Appeal from finding that taxpayer was an employee dismissed
Sep 24, 2015 By Bill Innes
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Précis: This decision was an appeal from a decision of the Tax Court which dismissed Mr. Hayfron-Benjamin’s appeal. He was assessed a 10% penalty for unreported income from three different employers in the 2008, 2009 and 2010 taxation years (the employers had all withheld and remitted the applicable tax). He maintained that he had not been employed by any of these employers. The Tax Court did not accept his evidence.
Hayfron-Benjamin v. R. - FCA: Appeal from finding that taxpayer was an employee dismissedREAD MORE »
R. v. Grenon - FC: Federal Court sets aside jeopardy order
Sep 24, 2015 By Bill Innes
Categories:
- Bill Innes on Current Tax Cases
- Other
Précis: In 2013 CRA obtained a jeopardy order against the CIBC RRSP Trust of Mr. Grenon. After being given leave to be added as an intervenor Mr. Grenon moved to set aside the order. (A jeopardy order made against him personally was set aside on consent.) Mr. Grenon moved to New Zealand in October of 2012. He withdrew a large amount ($55 million) from his RRSP in February of 2013 and transferred it to New Zealand. He also withdrew another $15 million and placed it in a high interest account (presumably in Canada).
R. v. Grenon - FC: Federal Court sets aside jeopardy orderREAD MORE »
Letoria v. R. - TCC: No tax credit for offset child support payments
Sep 23, 2015 By Bill Innes
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Précis: Mr. Letoria shared custody of his two children with his former spouse. He made support payments in respect of the children pursuant to two sequential court orders. He claimed $11,038 for the eligible dependent amount pursuant to subparagraph 118(1)(b) of the Income Tax Act (the “Act”) and $2,234 for the child amount pursuant to subparagraph 118(1)(b.1) of the Act in respect of one of the two children.
Letoria v. R. - TCC: No tax credit for offset child support paymentsREAD MORE »
Ford v. R. - TCC: Judicial review of taxpayer relief application denied
Sep 23, 2015 By Bill Innes
Categories:
- Bill Innes on Current Tax Cases
- Other
Précis: This case arose out of a voluntary disclosure that Mr. Ford made in 2003 in respect of his 2000, 2001 and 2002 taxation years. CRA asked for backup documentation which was never provided. He applied for taxpayer relief in 2010 and he was again asked for backup documentation which he did not provide. His request was denied and he applied for second level relief in 2012. He did provide some documentation with that application. In 2014 his application for second level relief was denied and he applied to the Federal Court for judicial review.
Ford v. R. - TCC: Judicial review of taxpayer relief application deniedREAD MORE »
Kokai-Kuun Estate v. R. - TCC: Property generates a capital gain, no proven losses to offset it
Sep 11, 2015 By Bill Innes
Categories:
- Bill Innes on Current Tax Cases
- Personal Tax, Estate & Wealth Planning
Précis: This decision concerned 40 acres of undeveloped land (the “Land”) owned by the late Mr. Zoltan Kokai-Kuun for 16 years (1992-2008) prior to its sale. He purchased the property for $110,000 and sold it for $370,000 but did not report any gain in his 2008 income tax return. The Minister assessed his estate for a capital gain of $235,755.60 in 2008. The estate resisted the assessment on two bases:
Kokai-Kuun Estate v. R. - TCC: Property generates a capital gain, no proven losses to offset itREAD MORE »
Agostini v. R. - TCC: Court upholds net worth assessments in the face of taxpayer’s far-fetched evidence
Sep 10, 2015 By Bill Innes
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Précis: This was a more than usually colourful net worth assessment case involving, inter alia, a wife ratting on her husband to CRA, the taxpayer’s mother contradicting the taxpayer’s evidence on the stand and an alleged safe full of cash that no one else in the family claimed to have ever seen. Put simply, Mr. Agostini attempted to defeat net worth assessments for 2007 and 2008 on the basis that prior to his marriage in 2004 he had lived frugally with his parents who paid most of his expenses (including buying clothes for him).
Agostini v. R. - TCC: Court upholds net worth assessments in the face of taxpayer’s far-fetched evidenceREAD MORE »

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